51.1-124.7 - Distribution of assets upon repeal of system.
§ 51.1-124.7. Distribution of assets upon repeal of system.
A. If the General Assembly repeals the provisions of this chapter orterminates its application to any person, the Board shall continue toadminister the Retirement System in accordance with the provisions of thischapter for the sole benefit of the then members, any beneficiaries thenreceiving retirement allowances, and any future persons entitled to receivebenefits under a joint and last-survivor option who are designated by amember.
B. Upon repeal or termination of the Retirement System, the assets of theRetirement System shall be allocated by the Board in an equitable manner toprovide benefits for the persons stated in subsection A of this section inaccordance with the provisions of this chapter but based on creditableservice and average final compensation as of the date of repeal ortermination and in the following order:
1. For the benefit of the then members to the extent of their individualaccount in the members' contribution account.
2. If any funds remain, then for the benefit of the then beneficiaries andpersons already designated by former members who are then beneficiaries undera joint and last-survivor option, to the extent of the then actuarial valueof their retirement allowances.
3. If any funds remain, then for the benefit of members, and persons, if any,designated by them under a joint and last-survivor option, to the extent, notprovided under subdivision 1 of this subsection, of the then actuarial valueof their accrued future retirement allowances. The allocation under thissubdivision shall be the basis of the oldest-ages-first method.
The employer is required to contribute the amount necessary to make up anyinsufficiency of assets needed to provide all benefits payable undersubdivisions 1 and 2 of this subsection.
C. The allocation of assets of the Retirement System shall be carried out bythe Board as the benefits become due or by the transfer of such assets to anyretirement system replacing this Retirement System. The vesting of benefitsshall be fully maintained under the new retirement system. Any fundsremaining in the assets of this retirement system after all of the vestedbenefits have been paid shall revert to the general fund.
D. Any allocation of assets shall be final and binding on all personsentitled to benefits.
(1952, c. 157, § 51-111.16; 1960, c. 604; 1977, c. 620; 1978, c. 841; 1980,cc. 637, 638, 646; 1982, cc. 467, 478; 1990, c. 832, § 51.1-105; 1994, cc. 4,85.)